Home Buying in Atlantic City>Question Details

Helen Burrou…, Home Buyer in New York, NY

I am considering buying an investment property in Atlantic City,NJ. It is an one bedroom condo in a hi-rise bldg. There is currently a long term

Asked by Helen Burroughs, New York, NY Sat Jul 2, 2011

tenant renting the apt. The rent covers both the monthly mortgage payment and the monthly maintenance charges. I am a first time buyer. Are there any downside risks that I should be considering? Since the mortgage payments are low - less than $300/mo. - should I consider a 15 year fixed over a 30 year fixed mortgage? Also, how do I find a good buyer's agent since I live in NYC and the property is in NJ?

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I am a broker -salesperson who specializes in Atlantic City.
Answer #1Unlike NYC in South Jersey, especially in Atlantic City, all agents are dual agents (that means we work with buyers and sellers). In the particular transaction an agent will be a buyers agent as long as you are not buying their listing.
Anwer #2 Before you buy a condo know the taxes and the condo fee and special assessments and utilities. Then you figure the rent. If it is a good investment for you to get a positive cash flow of at least 10%. Is the asking price around $60,000. You can call me at 609-703-2273 if it is a good building. Some one bedrooms are very good investments
0 votes Thank Flag Link Sat Jul 2, 2011
One risk is you will have a limited audience for tenants, due to the one bedroom. Moreover, it is likely you will only attract one tenant with one income, rather than attracting two tenants with two incomes, providing a rental income safety net, in the event one tenant becomes unemployed.

Further, it is our belief that owning rental property beyond a one hour drive from your residence, is a real bad idea.

Down the road, when you go to sell, you will once again appeal to a limited audience due to the size (1 bedroom) of the product.

If you elect to buy, get a 15 year mortgage.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Sat Jul 2, 2011
I would advise a client to take a 30 year mortgage with the lower monthly payment and then make extra payments as the cash flow allows. One must always be prepaired for a sudden unexpected assessment in a condo building. The best way to find an agent is to ask friends and family if they know of someone. Otherwise, sift thru various realtor websites to check out agents profiles.
0 votes Thank Flag Link Sat Jul 2, 2011
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